Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors. The fund will also consider investments in industries such as restaurants, retail, oil and gas, and technology sectors. It focuses on investments in Northeast, Mid-Atlantic, Southeast and Southwest regions from its New York office, the Midwest region, from the Chicago office, and the Western region from the Los Angeles office. The fund typically invests between $20 million and $200 million and a maximum of $400 million in companies with an EBITDA between $10 million and $250 million. It makes debt investments between $10 million and $100 million The fund invests through revolvers, first lien loans, warrants, unitranche structures, second lien loans, mezzanine debt, private high yield, junior capital, subordinated debt, and non-control preferred and common equity. The fund also selectively considers third-party-led senior and subordinated debt financings and opportunistically considers the purchase of stressed and discounted debt positions. The fund prefers to be an agent and/or lead the transactions in which it invests. The fund also seeks board representation in its portfolio companies.
Industry, Sector and Symbol
Stock Exchange NASDAQ
Industry Investors, not elsewhere classified
Sub-IndustryAsset Management & Custody Banks
SectorFinance
SymbolNASDAQ:ARCC
CUSIP04010L10
Phone212-750-7300
Debt
Debt-to-Equity Ratio0.62
Current Ratio1.35
Quick Ratio1.35
Price-To-Earnings
Trailing P/E Ratio12.48
Forward P/E Ratio10.98
P/E Growth3.65
Sales & Book Value
Annual Sales$1.16 billion
Price / Sales6.38
Cash Flow$1.4470 per share
Price / Cash11.99
Book Value$16.65 per share
Price / Book1.04
Profitability
EPS (Most Recent Fiscal Year)$1.39
Net Income$667 million
Net Margins69.31%
Return on Equity8.98%
Return on Assets5.20%
Miscellaneous
EmployeesN/A
Outstanding Shares426,300,000
Market Cap$7.40 billion
Ares Capital (NASDAQ:ARCC) Frequently Asked Questions
What is Ares Capital's stock symbol?
Ares Capital trades on the NASDAQ under the ticker symbol "ARCC."
How often does Ares Capital pay dividends? What is the dividend yield for Ares Capital?
Ares Capital declared a quarterly dividend on Wednesday, August 1st. Shareholders of record on Friday, September 14th will be given a dividend of $0.39 per share on Friday, September 28th. This represents a $1.56 annualized dividend and a yield of 8.99%. The ex-dividend date of this dividend is Thursday, September 13th. This is a boost from Ares Capital's previous quarterly dividend of $0.38. View Ares Capital's Dividend History.
How will Ares Capital's stock buyback program work?
Ares Capital declared that its Board of Directors has initiated a share repurchase program on Friday, April 7th 2017, which authorizes the company to repurchase $300,000,000.00 in outstanding shares, according to EventVestor. This repurchase authorization authorizes the company to buy shares of its stock through open market purchases. Shares repurchase programs are typically an indication that the company's board of directors believes its shares are undervalued.
How were Ares Capital's earnings last quarter?
Ares Capital Co. (NASDAQ:ARCC) released its quarterly earnings results on Wednesday, August, 1st. The investment management company reported $0.39 earnings per share (EPS) for the quarter, hitting the Thomson Reuters' consensus estimate of $0.39. The investment management company had revenue of $333 million for the quarter, compared to analysts' expectations of $322.06 million. Ares Capital had a return on equity of 8.98% and a net margin of 69.31%. During the same quarter in the previous year, the company posted $0.42 earnings per share. View Ares Capital's Earnings History.
When is Ares Capital's next earnings date?
What price target have analysts set for ARCC?
11 analysts have issued twelve-month price targets for Ares Capital's shares. Their predictions range from $15.00 to $19.50. On average, they expect Ares Capital's stock price to reach $17.9545 in the next year. This suggests a possible upside of 3.5% from the stock's current price. View Analyst Price Targets for Ares Capital.
What is the consensus analysts' recommendation for Ares Capital?
11 Wall Street analysts have issued "buy," "hold," and "sell" ratings for Ares Capital in the last year. There are currently 1 hold rating and 10 buy ratings for the stock, resulting in a consensus recommendation of "Buy." View Analyst Ratings for Ares Capital.
What are Wall Street analysts saying about Ares Capital stock?
Here are some recent quotes from research analysts about Ares Capital stock:
- 1. National Securities analysts commented, " For 2Q18 ARCC posted core NII/share of $0.42, a penny ahead of our estimate and two north of consensus. The company increased its quarterly dividend to $0.39/share from $0.38/share and we expect that the dividend will be bumped up by another penny in 3Q19.
Although we expect core NII to be comfortably ahead of the new dividend level we note that Ares recognizes fee income up-front and thus needs a meaningful buffer between core NII and the dividend in the event originations slow and capital structuring fees decline significantly.
Ares has multiple tailwinds for effective yield increases and thus NIM improvement. Firstly, we expect the company to continue to rotate out of ACAS assets and into higher-yielding ARCC direct originations. At 6/30/18, the company had $1.47 billion of ACAS assets remaining with a weighted average yield of 7.26% compared with $1.56 billion and a weighted average yield of 7.69% the quarter prior.
Secondly, we also expect the company to prioritize capital allocation to its SDLP (senior direct lending program). The SDLP had a yield by cost of 15.0% in 2Q18, unchanged Q/Q and comprised 5.2% of the portfolio at cost at quarter-end. We project the SDLP to be 8.2% of the portfolio at cost in 4Q18 and 14.2% in 4Q19.
ARCC’s NAV/share increased to $17.06 from $16.84 Q/Q on the back of more realized and unrealized gains largely pertaining to ACAS assets. We expect Ares to post double-digit economic returns for both 2018 and 2019 as a result of the steady NAV/share increases we expect to continue.
We are revising our 2018 core NII/share estimate to $1.64 from $1.65 and our 2019 core NII/share estimate to $1.74 from $1.77 and maintaining our BUY rating and $19 price target." (8/6/2018)
- 2. According to Zacks Investment Research, "ARES CAPITAL CORPORATION is a specialty finance company that is a closed-end, non-diversified management investment company. Ares Capital Corporation has elected to be regulated as a business development company under the Investment Company Act of 1940. Its investment objective is to generate both current income and capital appreciation through debt and equity investments. Ares Capital Corporation invests primarily in first and second lien senior loans and mezzanine debt, which in some cases includes an equity component, and, to a lesser extent, in equity investments in private U.S. middle market companies. " (5/3/2018)
Who are some of Ares Capital's key competitors?
Some companies that are related to Ares Capital include Prospect Capital (PSEC), TPG Specialty Lending (TSLX), Golub Capital BDC (GBDC), Tian Ge Interactive (TGRVF), New Mountain Finance (NMFC), PennantPark Investment (PNNT), Pennantpark Floating Rate Capital (PFLT), Gladstone Investment (GAIN), Capital Southwest (CSWC), Arlington Asset Investment (AI), THL Credit (TCRD), Oaktree Strategic Income (OCSI), TRIPLEPOINT VEN/COM (TPVG), Safeguard Scientifics (SFE) and Stellus Capital Investment (SCM).
Who are Ares Capital's key executives?
Ares Capital's management team includes the folowing people:
- Mr. Michael J. Arougheti, Exec. VP & Co-Chairman (Age 46)
- Mr. Bennett Rosenthal, Co-Founder and Co-Chairman (Age 55)
- Mr. Robert Kipp DeVeer III, Director & CEO (Age 45)
- Mr. Robert L. Rosen, Director (Age 72)
- Mr. Mitchell S. Goldstein CPA, CPA, Co-Pres (Age 51)
Has Ares Capital been receiving favorable news coverage?
News articles about ARCC stock have been trending somewhat positive on Saturday, according to Accern Sentiment. The research group identifies negative and positive media coverage by reviewing more than twenty million blog and news sources in real-time. Accern ranks coverage of companies on a scale of negative one to positive one, with scores nearest to one being the most favorable. Ares Capital earned a coverage optimism score of 0.16 on Accern's scale. They also assigned news headlines about the investment management company an impact score of 46.55 out of 100, meaning that recent media coverage is somewhat unlikely to have an impact on the company's share price in the next several days. View Recent Headlines for Ares Capital.
Who are Ares Capital's major shareholders?
Ares Capital's stock is owned by a number of of institutional and retail investors. Top institutional shareholders include Vaughan Nelson Investment Management L.P. (1.31%), Confluence Investment Management LLC (1.23%), Millennium Management LLC (0.80%), Bank of Montreal Can (0.74%), OMERS ADMINISTRATION Corp (0.64%) and Bruni J V & Co. Co. (0.57%). Company insiders that own Ares Capital stock include Michael J Arougheti, Penelope F Roll and Steve Bartlett. View Institutional Ownership Trends for Ares Capital.
Which institutional investors are selling Ares Capital stock?
ARCC stock was sold by a variety of institutional investors in the last quarter, including FMR LLC, Vaughan Nelson Investment Management L.P., Keybank National Association OH, Twin Tree Management LP, Penn Mutual Life Insurance Co, Sumitomo Mitsui Asset Management Company LTD, GSA Capital Partners LLP and Comerica Bank. View Insider Buying and Selling for Ares Capital.
Which institutional investors are buying Ares Capital stock?
ARCC stock was bought by a variety of institutional investors in the last quarter, including Millennium Management LLC, Standard Life Aberdeen plc, Caisse DE Depot ET Placement DU Quebec, PVG Asset Management Corp, Allen Investment Management LLC, First Republic Investment Management Inc., Putnam Investments LLC and Whittier Trust Co. of Nevada Inc.. Company insiders that have bought Ares Capital stock in the last two years include Michael J Arougheti, Penelope F Roll and Steve Bartlett. View Insider Buying and Selling for Ares Capital.
How do I buy shares of Ares Capital?
Shares of ARCC can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Scottrade, Fidelity and Charles Schwab.
What is Ares Capital's stock price today?
One share of ARCC stock can currently be purchased for approximately $17.35.
How big of a company is Ares Capital?
Ares Capital has a market capitalization of $7.40 billion and generates $1.16 billion in revenue each year. The investment management company earns $667 million in net income (profit) each year or $1.39 on an earnings per share basis.
How can I contact Ares Capital?
Ares Capital's mailing address is 245 PARK AVENUE 44TH FLOOR, NEW YORK NY, 10167. The investment management company can be reached via phone at 212-750-7300 or via email at [email protected]
MarketBeat Community Rating for Ares Capital (NASDAQ ARCC)
MarketBeat's community ratings are surveys of what our community members think about Ares Capital and other stocks. Vote "Outperform" if you believe ARCC will outperform the S&P 500 over the long term. Vote "Underperform" if you believe ARCC will underperform the S&P 500 over the long term. You may vote once every thirty days.
